Enbridge - Sandpiper project will be delayed
Wed, 09/07/2016 - 1:25pm
admin
Enbridge Energy Partners announced that it has completed its review of the Sandpiper project and concluded that the project needs to be delayed until such time as crude oil production in North Dakota rebounds sufficiently to support additional pipeline capacity. It is difficult to project exactly when the project may be required but it is likely outside Enbridge’s current 5-year planning horizon. As a result, Sandpiper’s regulatory applications currently underway with the Minnesota Public Utilities Commission will be withdrawn.
Since Enbridge first proposed Sandpiper in 2013, a great deal of review, study, public input and ongoing discussion has occurred. The MPUC has held nearly 30 public meetings on the project (plus 15 Line 3 route scoping meetings), which included comments about Sandpiper and were attended by thousands of Minnesotans. In addition, Enbridge has held approximately 700 meetings regarding both projects including sessions with landowners, community leaders, tribal communities, business and industry representatives and organizations, government officials, homeowner associations, academics, and other interested groups. Most of those efforts were very positive about Sandpiper. We have tried to be very open and accommodating about sharing information about Sandpiper and the project received widespread support from county commissioners, landowners, businesses and other community leaders along the route.
“Market conditions are very different now than they were when we first proposed Sandpiper. In addition, regulatory delays and changes to the approval process in Minnesota caused us and our shipping customer to seek a solution to get their product shipped to market in a timely manner,” said Mark Maki, President of Enbridge Energy Partners.
The counties along the Sandpiper route will miss out on the economic benefits that the project would have provided, including taxes associated with the pipeline and related facilities during the life of the pipeline (an estimated $25 million the first year in MN and $9 million the first year in ND). Communities along the route will also not realize benefits associated with 3,000 high-paying construction jobs and other economic benefits associated with construction of the pipeline.
“We greatly appreciate the support from labor unions, community leaders, legislators, state and industry associations, and landowners who have been behind the Sandpiper project and look forward to their continued support and commitment to the Line 3 Replacement project,” said Paul Eberth, Sandpiper Project Director. “Our focus now is on moving the Line 3 Replacement Project through Minnesota regulatory process in a timely manner. In doing so, we will continue to work with Minnesota agencies and stakeholders at all levels. We are committed to engaging in the applicable state and federal processes and receiving the necessary permits for the Line 3 Replacement Project.”
For more information, please contact the Enbridge media hotline number, 1-877-496-8142 or email usmedia@enbridge.com.